We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Macro data from around the world have long attested to the urgent need for a trade settlement between the US and China. Increasingly the corporate numbers are saying the same. Get your market update from @DavidCottleFX here:https://t.co/Qon7QUO80c https://t.co/rCOG78QQ2M
  • #Gold prices may fall while the US Dollar gains even as economic policies championed by the Trump administration invite inflation. Get your market update from @IlyaSpivak here: https://t.co/4lHhHsby56 $XAUUSD https://t.co/JmZxckVHdS
  • Cable (GBP/USD) remains just off its seven-month high print around 1.3165 as traders start to move to the side lines ahead of next Thursday’s General Election vote. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/CpCh13J9ZH #Brexit https://t.co/PIh6WUqbsK
  • (Weekly Technical Outlook) GBP/USD, EUR/GBP, GBP/JPY, GBP/CAD Outlook as UK Election Looms $GBPUSD $EURGBP $GBPJPY #UKelection2019 - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/07/GBPUSD-EURGBP-GBPJPY-GBPCAD-Outlook-as-UK-Election-Looms.html?CHID=9&QPID=917702 https://t.co/iuILHYczJ7
  • Why do you require consistency in trading and why does it matter? Find out: https://t.co/WlEFlluGfZ #tradingstyle https://t.co/TkMtJQKatx
  • By issuing debt denominated in $USD, China is making a long-term bet that it will be cheaper to pay back its loans over time in the US Dollar; it believes the value of the US Dollar will fall. Get your market update from @CVecchioFX here:https://t.co/5GO9UrvO4y https://t.co/xV9urXXf48
  • What are some risk trading management techniques? Find out: https://t.co/RShdlDz9RA #tradingstyle https://t.co/M3ASPIHAep
  • #Dow Jones stages impressive recovery on a firm NFP report. #FTSE 100 eyes UK general election. Get your equities technical analysis from @JMcQueenFX here: https://t.co/o28UcG6N3l https://t.co/SwGAaFCFND
  • Why do you require consistency in trading and why does it matter? Find out: https://t.co/f4y1FOOZnM #tradingstyle https://t.co/x5HgYopWc5
  • The USD may rise if the FOMC re-affirms its data-dependent approach and cools 2020 rate cut bets. US retail sales and CPI data may also give the Fed impetus to hold rates. Get your $USD market update from @ZabelinDimitri here: https://t.co/XnDITaDOox https://t.co/A480uVMqF2
US Dollar Tumbled as Haven Demand Ebbed, Asia Stocks May Climb

US Dollar Tumbled as Haven Demand Ebbed, Asia Stocks May Climb

2019-01-28 00:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open Talking Points

  • US China trade talk optimism bets send Emerging Markets, S&P 500 higher as USD declines
  • Temporary pause in US government shutdown fails to further lift sentiment, JPY depreciates
  • Nikkei 225 still at risk to a bearish reversal pattern. AUD/USD faces falling resistance line

See our study on the history of trade wars to learn how it might influence financial markets!

The US Dollar had one of its worst days since January 9th. This was despite a rally in local front-end government bond yields as 2019 Fed rate hike expectations improved. According to Fed funds futures, the probability of a hike in June rose from 20.4% to 24.4%. Simultaneously, global benchmark stock indexes soared as sentiment improved, sapping the appeal of haven assets.

On Wall Street, the S&P 500 rallied about 0.75% while the MSCI Emerging Markets Index climbed 1.32% as it closed at its highest since October 2018. The sentiment-linked Australian and New Zealand Dollars rose while the anti-risk Japanese Yen and Swiss Franc weakened. Most of the gains occurred during the European and early US trading session.

This suggests that market-wide optimism was not due to a temporary end in the partial US government shutdown which occurred later. The stopgap funding bill would allow the government to run until February 15th. US President Donald Trump said that if a budget for a border wall is not reached, the government would shut down. Chances of another one down the road are not necessarily completely off the table.

What seemed to be the main driver for risk appetite were perhaps hopes of a positive outcome on trade negotiations between the world’s largest economies. China’s Vice Premier Liu He will be visiting Washington DC ahead. It should also be noted that stock markets generally rallied last week despite mixed cues from the White House. Commerce Secretary Wilbur Ross mentioned that the two nations were ‘miles and miles’ apart.

Monday’s Asia Pacific Trading session is lacking notable economic event risk in a week filled with key statistics from the US. As such, the focus in the interim will likely remain on sentiment. It won’t be too surprising to see the Nikkei 225 aim higher. Such an outcome may further weaken JPY. The Japanese index still remains within a bearish reversal pattern that has been brewing for some time. Meanwhile AUD/USD needs to clear a critical descending resistance line.

US Trading Session

US Dollar Tumbled as Haven Demand Ebbed, Asia Stocks May Climb

Asia Pacific Trading Session

US Dollar Tumbled as Haven Demand Ebbed, Asia Stocks May Climb

** All times listed in GMT. See the full economic calendar here

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.